Small Sums with Big Impacts

December 7th, 2009

The powers that be in China may one eventually rue the day they rolled-out and began interpretation and application of the country’s anti-monopoly law. Since 2008 both Chinese and Western lawyers have been trying to read the tea leaves the new law presents to companies internationally and within China. The ruling against Coca Cola’s bid for a Chinese juice maker and the government’s judgment that Panasonic divest itself of units in Japan for China to accept its acquisition of Sanyo may have blow-back effect central government authorities are already beginning to regret.

Recently, a Chinese consumer won a suit against China Mobile for taking unfair advantage of its monopoly position in charging customers (FT). China Mobile is the world’s largest provider, with over 500 million users. The court awarded the consumer 1000 RMB (US$145) to settle the suit. Other suits awaiting settlement include China Netcom, Baidu and Sinopec.

So, as Chinese anti-monopoly authorities feel their way into the outside world with rulings that clarify the intent and the letter of the 2008 anti-monopoly law, they unwittingly arm their own citizens with ammunition to sue the country’s own State-run monopolies.

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One Response to “Small Sums with Big Impacts”

  1. outcast Says:

    Um, China Mobile does have 2 other competitors, including China Telecom and China Unicom.

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